### Calculate tax after discount

I have looked all over and found some replies about this subject, but I still can't figure it out... Maybe I'm stupid, but I'll ask anyway...

I'm giving my clients a total discount of 25% on all purchases. This is what is shown now.
For instance; The price of the product is 22.95 minus 25% discount is 22.95 - 5.73 = 17.22 total incl. Tax.
This shows now:
Sub-Total: 18.66 (this is 22.95 without tax)
Discount: 4.66 (= 25% of 18.66)
Tax 23%: 4.29 (which is 23% over 18.66)
Total: 18.29

The problem is with the tax. This should not be 23% over 18.66, but should be 23% over 14 (18.66 - 4.66) and therefor should be 3.22, which than should bring the total to 17.22.
The way it is now, the client pays too much tax.

To be more clear, this is what it should look like:
Sub-Total: 18.66
Discount: 4.66
(Sub-Total 2: 14.00)
Tax 23%: 3.22 (which is 23% over 14)
Total: 17.22

Any solutions?? I am using version 2.3.0.2.

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Sat Dec 01, 2012 4:15 am

### Re: Calculate tax after discount

How are you applying the discount? With an extension?

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Sat Jan 14, 2012 1:02 am
Location - United Kingdom

### Re: Calculate tax after discount

Whichever extension you're using for a discount needs to have a Tax Class setting on it. If you set that to the same tax class then it should decrease the "Taxes" line item appropriately based on the sub-total + discount.

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